Compound Interest Calculator
Calculate how your investments grow over time with the power of compound interest.
Future Value
$297,618
Total Contributions
$124,500
Total Interest Earned
$173,118
Inflation-Adjusted Future Value
$233,103
Investment Summary
Growth Breakdown
Investment Growth Preview
About Compound Interest
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is earned on the principal sum plus previously accumulated interest.
The power of compound interest is one of the most important concepts in investing. Even small amounts of money can grow significantly over time when interest compounds.
The frequency of compounding makes a difference in the total amount of interest earned. The more frequently interest is compounded, the more interest will be earned.
In Canada, registered accounts like TFSAs and RRSPs allow your investments to grow tax-free or tax-deferred, maximizing the benefits of compound interest.